What is the difference between original sin and imputed sin?

The terms "original sin" and "imputed sin" refer to the two main
effects that Adam's sin had on the human race.

First, as a result of Adam's sin we all enter the world with a
fallen nature. This is original sin--the sinful
tendencies, desires, and dispositions in our hearts with which we
are all born. Thus, original sin is something inherent in
us--it is a morally ruined character. The original sin that we
are all born with manifests itself throughout our lives in actual
sins--the actions, thoughts, and feelings we have that violate
God's moral commands. So our sinful hearts (original sin) cause us
to make sinful choices, think sinful thoughts, and feel sinful
feelings (actual sins). We are not sinners because we sin; rather,
we sin because we are sinners. We are all born totally
imprisoned in original sin. There is no island of goodness left in
us.

Second, the guilt of Adam's sin is credited not just to Adam
himself, but to us all. We are regarded as having sinned in
Adam, and hence as deserving of the same punishment. This is
imputed sin. Thus, we not only receive polluted and sinful
natures because of Adam's sin (original sin), but we are also
regarded as having sinned in Adam such that we are guilty of his
act as well (imputed sin). Imputed sin is the ruin of our
standing before God and is thus not an internal quality
but an objective reckoning of guilt, whereas original sin is the
ruin of our character and thus is a reference to internal
qualities. Both original sin and imputed sin place us under the
judgment of God.

Since the consequences of Adam's sin are twofold (original sin
and imputed sin), the remedy of our salvation is also twofold. John
Piper writes:

So we have seen two things that need a remedy. One is our sinful
nature that enslaves us to sin, and the other is our original guilt
and condemnation that is rooted not first in our individual sinning
but in our connection with Adam in his sin. The book of
Romans—indeed the whole Bible— is the story of how God
has worked in history to remedy these two problems. The problem of
our condemnation in Adam God remedies through justification in
Christ. The problem of our corruption and depravity he remedies
through sanctification by the Spirit. Or to put it another way: The
problem of our legal guilt and condemnation before God is solved by
his reckoning to us the righteousness Christ; and the problem of
our moral defilement and habitual sinning is solved by his
purifying us by the work of Spirit. The first remedy,
justification, comes by imputed righteousness. The other,
sanctification, comes by imparted righteousness. Justification is
instantaneous; sanctification is progressive – and we will
deal extensively with it in Romans 6-8, just we have dealt with
justification in Romans 3-5. (John Piper, "Adam, Christ, and Justification:
Part IV")

Further Resources

John Murray, The Imputation of Adam's Sin.

Wayne Grudem, Systematic Theology, chapter 24,
"Sin"

Jonathan Edwards, The Great Christian Doctrine of Original
Sin Defended in The Works of Jonathan Edwards Volume
I, pp. 143-233.

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